Thursday, May 18, 2017

Thursday -- VIX & Markets Wake Up, Classic Car Prices, CAD, NQ

Perhaps that one-day 46% gain can lay to rest fears of VIX being manipulated into oblivion by AI algos and central bank trading bunkers.

Excess liquidity naturally suppresses volatility because it makes assets prices rise and no one "needs" insurance.

Until they do.

Mood:
Recall the guy who recently called for a "life changing" rally.

He commented yesterday, "Such a strange thing to see the S&P 500 make a new all-time high yesterday and break below its 50-day today."

That's what happens when markets wake up and get real. Too much complacency leads to too much fear. Too much yang leads too too much yin. Hoping for much more two-sided market action.

At this juncture, just hope it's a warning.

Like this one:

Source: Wolf Richter, Wolf Street

Using only the data shown, we could be experiencing the "surprising disappointment" of a 4th-wave correction before a manic drive to new highs. Hard to say if it's a peak or not without seeing more data.

From Marketwatch.com: “The global asset class of collector cars ... is quietly but persistently and very unenjoyably experiencing a downturn that parallels and in some aspects already exceeds the one during the financial crisis,” Wolf Street's Wolf Richter noted.

"And here’s why that’s important. Classic car prices move similarly to other assets, such as equities and real estate. The Hagerty index peaked and then plunged in April 2008, a few months before U.S. stocks suffered the biggest crash in decades, suggesting it’s an early indicator of what could be in store for other asset classes."

"Smart, clear, level headed thinking . . . It calms me to read an unbiased assessment of this market by the numbers."

"Great job and key insight here! Thx!"

"Still check your blog just about every day, great reading. Love It!!!!!!"

"You were born for writing and trading. I love your blog."

Blog Archive

Marz Bonfire is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The author and publisher may or may not hold positions in the financial instruments discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading stocks, futures, options, currencies, or any other product discussed here. The author, the publisher, and any and all affiliates assume no responsibility or liability for your trading and investment results.